Suppose It Is October 1,1990 and Inflation Rates in the U.S.and

question 10

Multiple Choice

Suppose it is October 1,1990 and inflation rates in the U.S.and France are expected to be 4% and 9%,respectively,next year and 6% and 7%,respectively,in the following year.If the current spot rate is $.1050,then the expected spot value of the franc in two years is

• A)$.1111
• B)$.1024
• C)$.0992
• D)$.1074

---

Definitions:

Sinus Venosus

End of the embryonic cardiac tube where blood enters the heart; becomes a portion of the right atrium, including the SA node.

Pharynx

Upper expanded portion of the digestive tube between the esophagus below and the oral and nasal cavities above and in front.

Thyroid Gland

Endocrine gland located inferior to the larynx and consisting of two lobes connected by the isthmus; secretes the thyroid hormones triiodothyronine (T3) and tetraiodothyronine (T4).

Adrenal Medulla

A portion of the adrenal gland responsible for producing adrenaline and noradrenaline, which are vital for the body's fight or flight response.